Silver Price Outlook: XAG/USD Slides Below 100-Hour SMA Support Around $62.50
GlobePRwire
Silver (XAG/USD) faced selling pressure during the Asian trading session on Tuesday, erasing a portion of the overnight rally. After approaching the all-time peak near $64.65, the white metal reversed course, slipping back toward the mid-$62.00s. LFtrade brokers deliver a clear and comprehensive breakdown of this topic in the article.
The retreat comes after a sharp upward leg, highlighting the susceptibility of silver to profit-taking and short-term technical corrections. Traders are now closely watching the 100-hour Simple Moving Average (SMA), a pivotal support level that has been breached, pointing to the potential for further downside momentum.
Technical Setup Favors Bears
The intraday technical landscape suggests that bears are currently in control. Breaking below the 100-hour SMA near $62.50 has triggered sell signals for short-term traders. Moreover, the 1-hour oscillators, including the Relative Strength Index (RSI) and MACD histogram, have turned negative, reinforcing the case for a continued downtrend.
The immediate focus for bearish traders is the $62.00 psychological level, a round figure that could act as a short-term support zone. If XAG/USD sustains below this area, further declines may target the next significant support near $61.45, followed by last Friday's swing low around $60.80.
A sustained drop could eventually bring silver to test the $60.00 psychological mark, a key level watched by both technical and sentiment-driven traders. The momentum indicators suggest that a decisive breach here could open the door for deeper corrections, emphasizing the risk-reward setup for intraday and swing traders alike.
Key Resistance Levels for Bulls
On the flip side, bullish participants need to see acceptance above $64.00 before considering new long positions. Clearing this level would negate the current negative bias and could enable XAG/USD to challenge its all-time high near $64.65.
If silver manages to breach the $65.00 psychological level, it may signal renewed upward momentum and attract further buying interest, possibly extending the rally toward multi-year highs. Traders should monitor volume patterns, as rising participation on the upside would validate bullish continuation scenarios.
Intraday Trading Implications
For short-term traders, the breach of the 100-hour SMA provides a technical trigger to explore bearish setups. Common strategies may include taking short positions near resistance zones around $62.50–$63.00, using trailing stops to protect profits in case of sudden reversals, and monitoring 1-hour oscillators such as RSI and MACD for confirmation of bearish momentum.
On the upside, bulls must remain cautious, waiting for sustained breaks above $64.00 before considering long positions. This level serves as a key pivot, where renewed buying could shift the trend bias back in favor of the bulls.
Market Sentiment and External Drivers
Silver’s price action is also influenced by broader market sentiment and macroeconomic drivers. The strength of the US dollar (USD), movements in real interest rates, and geopolitical uncertainty continue to play a crucial role in XAG/USD volatility. Risk-off sentiment in global markets tends to increase demand for safe-haven assets like silver, whereas a stronger dollar can weigh on prices.
Traders should also monitor commodity flows, ETF holdings, and industrial demand trends, as these factors can exacerbate intraday swings and help anticipate potential reversals or continuation patterns in the near term.
Technical Patterns and Chart Signals
Short-term support clusters around $62.00–$61.45 are critical, as a break below these zones could confirm the channel’s downward bias. Conversely, a strong bullish engulfing pattern or a break above $64.00 would indicate that buyers are regaining control, potentially setting up a trend reversal or continuation toward new highs.
Medium-Term Outlook
The recent price action indicates that silver is undergoing a short-term correction after a rapid surge to near-record highs. The breach of the 100-hour SMA highlights vulnerability to technical retracements, with the potential to test critical support zones between $61.45 and $60.80.
However, silver’s long-term trend remains bullish as long as prices remain above the major support levels. Traders and investors should pay close attention to economic indicators, including inflation data, US dollar strength, and interest rate expectations, which could influence XAG/USD’s trajectory over the coming sessions.
Conclusion
Silver (XAG/USD) is currently under pressure, retreating from its record highs and breaking below the 100-hour SMA, signaling potential further declines. Intraday technical setups favor bearish traders, with key support levels at $62.00, $61.45, and $60.80.
Conversely, bulls need a sustained move above $64.00 to reclaim the upside momentum and target the all-time high near $64.65. Should XAG/USD breach the $65.00 psychological level, the stage may be set for further gains. Traders should continue to monitor technical indicators, support/resistance levels, and macro fundamentals to navigate the current volatile environment in silver markets.